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Grocery store giants Albertsons and Safeway to merge

Grocery Store Giants Albertsons and Safeway to Merge

Some big changes might be happening at your neighborhood marketplace. HLN reports two of the country's biggest grocery stores are merging.

'Do you have an Albertsons or a Safeway near you? Albertsons is buying Safeway. No stores are expected to close. So it could create a chain of 2,400 stores with a quarter million employees.'

With that many stores, the chain is poised to become a major competitor to its rivals.

"The two companies say the merge will enable them to cut costs and offer competitive prices to consumers."

According to Bloomberg, the companies also expect the $9 billion deal will allow them to '...expand their reach amid mounting competition from Wal-Mart Stores Inc. and warehouse clubs, as well as online food sellers and delivery services.'

But one commenter on a KOMO article expressed concerns over the merger, saying:

'This is really bad news. Less competition means higher prices and less selection.'

KOMO did speak with one industry consultant- who thinks there's likely nothing to fear about the deal.

'I don't know that you're going to see them have the ability to actually raise prices in any way even though they'll be bigger and there will be more concentration.'

There are reports the Federal Trade Commission will likely require the newly merged chain to sell off some stores. If that's the case, others can buy them and diversify the market, keeping prices balanced.

Join the discussion

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emberbb March 07 2014 at 5:51 PM

I am in the southeast and we have Publix, which is a wonderful store. Publix has expanded to a few other states, and they are getting big. For years, only FL had Publix, plus the awful WinnDixie, Albertson's and A&P. I had lived in CA many years ago and they had many grocery stores then. I don't remember which one my parents shopped at but I remember the names of local chains - Ralph's, Safeway, Thrifty, Von's and one great specialty store in the Beverly Hills area - Gelson's. Gelson's was a treat and had meals and a real bakery. Believe it or not, I go to a newly built, small Walmart for sundry items and their brand of over the counter meds, which can't be beat for size and price. They are good on name brands of paper products. Loyal to Publix because they have good sales, very clean, always buy one-get one free. Everything is fresh and the help are good, too.

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jodie77 emberbb March 07 2014 at 6:07 PM

I miss publix, we always went food shopping there when we visit family in Florida. Northeast doesn't have any Publix.

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simoesphilip March 07 2014 at 5:36 PM

Not good. Less competition, higher prices. Just like with the airlines.

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bowtie65ss March 07 2014 at 5:38 PM

It's been quite a while since I've shopped at Safeway, I would normally go to Lucky's for the biggest deals. It would have to be something very special on sale to get me to Safeway. With Lucky's I've earned as much as 65 cents off price of gas, special deals on their meats and produce.
I do hope the purchase of Safeway doesn't hurt it's current employee's at all but welcome any big changes in today's grocery stores.

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Dave March 07 2014 at 5:40 PM

Safeway was the parent company of Dominick's here in Chicago. They closed them all at the end of the year and over 4000 people lost their jobs. Expect many more when/if this merger is completed.

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Nancy Dave March 07 2014 at 5:52 PM

And Albertson's used to own Jewel Osco and sold them to same invest firm! Look out Chicago area food stores! We are going to be stuck at Wal-Mart, Super Target or Whole Foods!

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cliffy934 March 07 2014 at 5:43 PM

The big chain grocery stores better watch out, Winco has moved into Arizona, and they are an employee owned grocery chain. They are huge stores, and have a lot of bargains, so the big guys better watch out for them.

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Jgreenefields March 07 2014 at 11:27 PM

How is Albertson's closing stores and now buying Safeway?

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fyiash Jgreenefields March 07 2014 at 11:37 PM

The company that owns Albertsons(Cerebus) has closed down under performing stores . They are a private investment firm that knows how to not lose money in all the companies they own.

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Sheila March 07 2014 at 8:00 PM

Didn't Albertsons get bought out by Publix? How come they can now buy Safeway?

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SoCal+TacoHell! Sheila March 07 2014 at 8:43 PM

No, Albertsons only sold some of their store locations in FL which they were closing, and were converted to Publixes. Albertsons still has 4 stores of their own in Florida, which is not much, but they are still there.

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dlyfaith March 07 2014 at 11:17 PM

It's greed and there are too many mergers, they'll be concerned less and less about the prices they charge the consumer (not just grocers, but all businesses)

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rsb418 March 07 2014 at 5:49 PM

I heard A&P and Stop and Shop were merging into Stop & P

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wblibrary March 07 2014 at 10:55 PM

I am so angry over this merge! Albertson's is a horrible supermarket. If they implement their standards on Safeway stores - they have lost a long-time customer.

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1 reply
fyiash wblibrary March 07 2014 at 11:49 PM

A multi-billion dollar investment firm would not add a horrible company to it's portfollio. It apears you have had some poor customer service experience at an Albertsons supermarket. If you haven't been in an Albertsons in the past 6 months, give them another chance to earn your loyalty. A lot of new policies have been implemented under the new ownership to bring their service up to legendary status & if you still feel they don't meet your expectations, contact the store director to address your concerns.

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